The Confectioners' intensity of rivalry among existing companies is high even though the industry has partially differentiated products. That is due to many equally balanced competitors, slow growth in the mature market, high storage and fixed costs, and high exit barriers. All of these factors cause price wars, advertising battles, the emergence of new product lines and higher quality of products in the Confectioners industry.
The Bargaining Power of Buyer: LOW to MEDIUM
Although there are several large-volume buyers, such as Wal-Mart, who could bargain to lower the prices, thus reducing the industry's profits, there are other factors that can limit the bargaining power of buyers.
Chapter 1 Refurbishment vs redevelopment
Malaysia property market has experienced a drastic change in 2008. The house market shifted from a growth at the end of 2007 to uncertainties scheduled to increasing building cost. Finally, the house market relocated into a comparatively peaceful market towards the end of 2008. With all the current banks wanting to tighten their loan conditions, obtaining lending options for development of all types of commercial building have been difficult within the last three years.
Yet, study implies that there continues to be a high demand for space in office building in area like Kuala Lumpur. Every once in awhile, there are several advancements of new office structures in Klang Valley area. From the analysis done by JPPH, there is an increase of around 10 million square metres of new office space throughout Kuala Lumpur.
